Landlord Tips & Tricks

July 20, 2024

Boise, ID - Real Estate Market Overview 2024

Zoe Harper

Marketing

Boise, Idaho is now a buzzing real estate market. Homes sell quickly and the prices keep going up. As of May 2024, the median sale price hit $539K. That's a jump of 10.6% from last year¹. It shows people really want to live here, making the Boise housing scene very competitive.Homes are flying off the market in just 12 days on average². Also, more homes were sold in May 2024, with a total of 284, up from 269 the year before². This means Boise's housing market is not just active, but growing strong each year. Moreover, Boise's median sale price is now 22% more than the national average. Living here costs a bit more too, about 4% higher than most places in the U.S¹..

Key Takeaways

Boise's housing market has seen a 10.6% increase in home prices as of May 2024¹.
The median sale price stands at $539K¹.
Homes in Boise sell within an average of 12 days².
A total of 284 homes were sold in May 2024, reflecting a slight increase from the previous year².
Boise's median sale price is 22% higher than the national average¹.
The cost of living in Boise is 4% greater than the national average¹.

Current Market Trends in Boise

The real estate market in Boise is on the rise, with home prices going up. As of June 2024, Boise's median home sale price hit $556,500. This is a 6% increase from last year³. This rise mainly comes from more expensive homes selling, not prices going up for all homes³. The cost per square foot in Boise has fallen a little since its high in April⁴.

Boise's housing market has seen ups and downs in demand. Changes in interest rates earlier in the year made more people buy homes. But then, higher interest rates slowed things down, except for the most fairly priced homes⁴. Ada County’s median home price went up by 7.5% to $556,500 in April 2024. Canyon County saw a bigger increase of 10.3%, reaching $429,995³.

In April 2024, Boise's median listing price was $525,000. That's $25,000 more than the year before⁴. Also, Ada County's median home price matched Boise's at $556,500 in April, signaling strong growth⁴.

Even with these positive changes, Boise's market faces challenges. The average price per square foot is now $314, an increase of 4.7%⁴. The 30-year mortgage rate has climbed to 6.99%, affecting the market⁴. Yet, growth is expected to continue, with a 3.7% rise in housing prices across the Boise City MSA by March 2025 projected⁴.

Historical Home Price Trends in Boise, ID

Exploring Boise's historic price trends shows big changes over time. The history of real estate prices in Boise shows big ups and downs. These changes come from the changing real estate market.

Year-over-Year Changes

Boise's housing market shows clear changes in home prices every year. For instance, in April, Ada County's median home price went up by 7.5%, reaching $556,500³. Meanwhile, Boise saw a 5% increase, with median prices at $525,000 during the same time³.

But, in February, Boise's prices slightly fell by 1.2%, to $478,200⁵. Despite this, the price per square foot rose by 10.4%⁵.

Moreover, Ada County's single-family home median price jumped by 15.2%. This is the highest increase since May 2022³. Boise's home prices show steady growth over time⁵.This shows a market that quickly adapts.

Five-Year Market Snapshot

Over five years, Boise's housing market consistently grew. The median list price in Boise rose to $525,000, a 5% yearly increase⁴. The average price per square foot is now $314, after a 4.7% increase⁴.

Ada County's median home prices also rose by 7.5% to $556,500 in April³. Canyon County homes went up by 10.3%, to $429,995³. This shows strength and growth in Boise's market over five years.

Learning about Boise's historical price trends helps foresee future market trends. A look at year-over-year changes and the five-year overview shows Boise's real estate strength and potential.

Factors Influencing Home Prices in Boise, ID

Understanding what causes changes in Boise's housing market is key for both buyers and sellers. The prices of homes in Boise are affected by various things. These include how well the local economy is doing, interest rates, and how many people want to buy versus how many homes are available.

Economic Conditions

The economy plays a big role in Boise's housing market. Because there are stable jobs and more people are getting hired in Idaho, more people want to buy homes here. But, it's hard to build affordable houses. To make a house that's affordable, it costs about $115,000 more than what most people can pay⁶. This makes it tough to have enough affordable homes for everyone⁷.

To keep up with how many homes are needed, Boise needs to build about 2,770 new houses every year for the next ten years. This shows how much Boise's house prices affect the economy⁷.

Interest Rates

Interest rates have a big relationship with real estate in Boise. When interest rates go down, more people can buy homes. This makes more people want to buy. But, if interest rates go up, buying a house becomes harder because the loans cost more. Right now, houses in Idaho are selling for a bit less than the asking price. This shows that interest rates can really change how people feel about buying homes⁸.

Supply and Demand Dynamics

The balance between how many homes are for sale and how many people want to buy them is crucial in Boise. When not many homes are for sale, it can lead to higher prices because buyers are competing with each other. In January, there were 1,169 homes for sale in Boise, which is not a lot⁶. The time of year also affects home sales. They usually peak between May and July and go down in January, which is the slowest month. Sales dropped a lot in January 2023, showing that demand can change a lot from one year to the next⁸.

Also, to meet the need for houses, Boise's neighborhoods need to allow for more homes to be built. They need about 26% more homes⁷. Last year, the median price of a home in Boise fell by 14.6% to $458,600. At the same time, the number of homes sold dropped by 13%. This shows how the balance of supply and demand can really change prices⁸.

Ada County Market Analysis

Ada County, including Boise, shows different market trends. The median house prices in Ada County hit $569,990 in June. This was a 4.6% increase from last year. Boise saw a bigger climb of 6%, reaching $556,500⁹.

Median Home Prices

The median prices Ada County real estate have gone up, showing changes in the local market. Housing stats for Ada County reveal steady growth. There was a noticeable rise of over $30,000 in median prices from February to March 2024¹⁰. This indicates a strong and evolving real estate sector.

Comparison with Boise

Comparing Boise vs. Ada County's markets shows intertwined yet distinct trends. Boise's median price increase was similar to Ada County's. However, Boise's market is shaped by other local factors⁹.

For a deep dive into Ada County's property trends, check the detailed market analysis by Boise Regional REALTORS®⁹.

Median Home Prices

Ada County's median house prices highlight strong demand and limited supply. In March 2024, the market saw a $56,800 increase in resale prices. This points to a fiercely competitive housing market¹⁰.

Comparison with Boise

In comparing markets, consider the speed of market activities. Ada County had a spike in pending sales, the highest since August 2022. Boise also performed well, powered by unique factors¹⁰. This shows the active relationship between these markets.

Neighborhood Price Variations

Boise's real estate shows a mix of prices across neighborhoods. This city has areas that are pricey and others more affordable.

High-End vs. Affordable Areas

Places like North End and East End feature expensive homes. Meanwhile, West Bench and South Boise offer more affordable living. The median Boise home price hits $450,000. Prices have risen by 9.2% over the past year⁵.This shows Boise's wide range of home prices. It highlights the difference between luxury and budget-friendly homes.

Suburbs vs. City Center

Downtown Boise homes are pricier on average, costing about $498,745. They sell fast, often in just 11 days¹¹.Suburban areas offer cheaper options and homes stay on the market longer. This makes suburbs great for those wanting affordability and space.

High-End vs. Affordable Areas

In upscale neighborhoods like East End, home prices are climbing. They follow a 10% growth trend in values⁴.But in areas like South Boise, price increases are smaller. This draws in first-time buyers or those on a budget. The different rates of increase show varied investment chances across Boise.

Suburbs vs. City Center

In the suburbs, growth is steady with more new homes being built¹¹. The city center, however, sells homes faster and at higher prices.Boise's overall area expects a 3.7% growth by March 2025⁴. This hints at a strong and changing real estate market.

To learn more, you can explore deeper into Idaho's housing trends. This info can help prospective buyers make informed decisions.

Comparison with National Averages

In comparing Boise to the whole country, Boise's real estate really stands out. The median house cost in Boise was recently $450,000⁵. This is a drop of 6.3% from last year, but it's still above the U.S. median of $412,000. This shows Boise is unique in the real estate world, thanks to a booming economy and high demand.

Boise's home prices show how much people want to live there. The price for each square foot is now $296, showing a 9.2% rise from last year⁵. Even with market ups and downs, Boise's real estate strength is clear when you look at the whole country.

Boise has a very low number of homes available, only a 2.1-month supply, with prices going up by 5%¹². This scarce inventory and price hike highlight Boise's strong market performance compared to the national scene.

Also, Boise's housing market looks set to grow a bit more. Soon, there could be a 0.5% increase, followed by a 2.1% jump⁵. This is happening even as the rest of the country sees slower growth.

When we look at market activity, Boise also does well compared to the nation. Homes in Boise usually stay on the market for 36 days⁵. This is slightly slower but shows strong demand and a thriving job market.

The cost per square foot in Boise's market has gone up by 4.7% to $314⁴. This growth puts Boise in a good spot when comparing it to the national housing market.

To understand more about Boise's real estate, check out this detailed analysis ¹².

Impact of Seasonality on Sales in Boise, ID

The season plays a big role in Boise's real estate sales. May is a busy month because families want to move before school starts. This makes sales and prices in Boise rise and fall during the year.

Spring and summer see lots of sales activity. In Ada County, the middle price for listed homes was $280,000 in the spring. This led to homes selling for around $279,900 and they were sold in about 28 days¹³. In Canyon County, homes also sold in 28 days during these busy months. This shows how demand goes up¹³.

Winter months, however, slow things down with fewer buyers. Homes may stay for sale longer and prices might need to change. Sellers should be ready to adjust their prices to attract buyers during this slow time.

Mortgage rates changing also makes predicting the market hard. At the year's start, rates went up to 4.32%. This affected how much buyers could spend and the selling strategies¹³. To keep up, people in real estate need to keep an eye on trends and make smart choices.

Looking closely at market reports, like the local market update, helps understand these changes. These details give us a clear picture of how Boise's real estate responds to different seasons¹³.

Future Market Predictions in Boise, ID

The outlook for Boise real estate shows exciting trends. Factors like the economy and interest rates play a big part. Growth is fueled by more than just local happenings. Home prices are likely to rise by over 10% in one year. This means sellers will have an upper hand (Boise housing market shows strong growth)¹⁴. It's clear the market is moving quickly.

Projected Trends for the Next Year

Next year, Boise's housing market is expected to speed up. Homes might sell in as few as 6 days. This shows just how competitive it will get⁴. Plus, Ada County's median home prices might go up to $556,500. That's a 7.5% increase⁴. A boom in wages, with a 62% jump from 2017 to 2022, supports this fast pace⁴.

Long-Term Market Forecasts

Looking five years ahead, Boise's property market looks strong. Mortgage rates could average around 7% in 2024. But they might drop to between 5.5% and 6% in two years, says Lawrence Yun¹⁴. Home prices could jump by 15 to 25% during this time¹⁴. A shift to a balanced market is expected, moving from the current seller's favor¹⁴. New homes will mostly be built in the South, hinting at where people are moving¹⁴.

Boise's real estate will also be shaped by changes in interest rates and the economy. Already, home sale prices have risen by 5.7% over a year. This shows the market's strength and low home supply. Only 2.9 months worth of homes are available¹⁴. This means the competition among buyers might get tougher, with prices likely going up. For more insights, check the Growing Idaho’s Housing Forecast¹⁴.

Boise, ID - Real Estate Market Overview

Boise's real estate picture is both changing and full of opportunities. Even with its ups and downs, it stays appealing. The median sale price of homes now sits at $450,000 after a 6.3% drop⁵. Yet, the cost per square foot for homes has gone up by 9.2%, to $296⁵. This shows that Boise still offers solid chances for smart investors.

More people from other states are buying homes in Boise, pushing demand and prices up. The median home price in Ada County went up by 5.8% since last January³. March saw home prices leap by 13.4% to $529,990 - the highest since June 2022³. These changes show Boise's real estate scene is adapting, offering great possibilities for buying and selling.

Boise homes typically sell in about 36 days, with the market staying lively⁵. Despite a 3.8% drop in median list prices to $475,000, competition remains fierce as of January 2024⁵. Some homes sell for less and some for more than their list price. This tells us there’s still a lot of interest in Boise, supported by its growing job market in Tech and Healthcare⁵.

The outlook for Boise's real estate is looking up, with a 2.1% increase expected by May 2024⁵. The median price for homes in Ada County hit $569,990, up by 4.6% from last year³. With a low unemployment rate of 2.9%, Boise's job market is attracting more people. For deeper insights, have a look at this resource ³.

Conclusion

The Boise real estate scene is always changing and growing. However, it faces some tough challenges too. Looking back, we saw a massive 38.6% increase in home prices from 2020 to 2021. But by the third quarter of 2022, this growth slowed down to just 2.8%¹⁵. The median home cost hit $534,950 in 2021. This price was way beyond what most families could afford, by 72%¹⁵. Because of these prices, Boise is considered one of the most overpriced markets, according to Fitch ratings¹⁵.

Despite this, Boise still offers great chances for investors. This is thanks to its steady value increase and strong economy¹⁶. The city attracts people with its job openings, school quality, and fun places to visit¹⁶. For investors, knowing how to handle money and working with property experts can help make sense of the market¹⁶. There's a rise in new building projects, which shows efforts to meet the huge demand¹⁷.

Between February 2021 and November 2022, the number of homes for sale grew from 532 to 3,633¹⁵. This could mean the market is getting more balanced. Yet, there’s a prediction that house values might drop by 5.8% within a year¹⁵. For those thinking of buying or selling, it's wise to talk to experts. They can help you make the best of the situation. The Boise real estate world is complex, but with smart choices and plans, you can do well in it.

FAQ

What is the current median sale price for homes in Boise?

The median sale price for homes in Boise is $556,500 as of June 2024. Prices have risen by 6% from last year.

How quickly are homes selling in Boise?

Currently, homes in Boise sell in about 12 days. This indicates a slight drop from the year before.

How does Boise's median home price compare to the national average?

Boise’s median home price is 22% more than the U.S. average. This shows Boise's strong market performance.

What economic conditions influence housing prices in Boise?

Several factors affect Boise's housing prices. Job stability and growth are crucial.

Interest rates and the balance of supply and demand play a big role too. Low rates draw in buyers, while high rates might cool down the market.

How does the real estate market in Ada County compare to Boise?

Real estate in Ada County and Boise show slight differences. In June 2024, Ada County's median was $569,990. Boise's was slightly lower at $556,500.

Are there significant price variations across different neighborhoods in Boise?

Certainly, prices in Boise vary by neighborhood. More expensive areas have higher prices.

On the other hand, more affordable areas have lower prices. The city center is generally pricier than the suburbs.

How do seasonality trends affect Boise's real estate market?

Boise's real estate feels the impact of the seasons. May stands out as a busy month, with families moving in time for school.

Throughout the year, sales and prices can rise or fall. These changes reflect the typical busy and quiet seasons in the housing market.

What are the future trends predicted for Boise’s real estate market?

Expectations for Boise's real estate vary. Some predict growth, while others foresee steady times. The future will be influenced by economy shifts, rate changes, and local events.

What factors contribute to Boise's housing market outperforming the national average?

Boise beats the national average thanks to its attractive features and strong economy. The city’s median home prices stand well above the U.S. average.